24h Volume vs Market Cap – What They Tell You Before You Trade
Before I trade any crypto, I always check two key metrics:
24h Volume and Market Cap. Here’s what they mean and how I use them:
1. Market Cap = Overall Size of the Coin
Market Cap = Price × Circulating Supply
It shows how big or established the coin is.
High Market Cap (like $BTC , $ETH ): More stable, less risky
Low Market Cap: More potential for big gains — but higher risk
2. 24h Volume = Trading Activity in the Last 24 Hours
This shows how much of that coin is being bought/sold.
High Volume: Good liquidity, easy to enter/exit trades
Low Volume: Slippage risk, hard to sell during pumps/dumps
What I Look For as a Trader:
Small Market Cap + High Volume = Possible Pump or Trending Coin
Low Volume + High Market Cap = Not much action, maybe not worth it
Balanced Volume & Cap = Good for stable trades or long-term entry
Always combine volume, market cap, and trend analysis before you jump in!
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